NCLT
NCLT Under IBC Is Not Empowered To Direct De-Attachment Of Property Attached Under PMLA By ED: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Justice Shri. Sunil Kumar Aggarwal (Judicial Member) and Shri. Radhakrishna Sreepada (Technical Member) has held that the NCLT under the IBC is not empowered to direct the de-attachment of property attached under the PMLA by the Enforcement Directorate, as such power falls within the realm of public law over which the NCLT has no jurisdiction. The present application has been filed by the Resolution Professional under...
Director Communications Can't Replace Documentary Proof For Establishment Of Loan: NCLT Delhi
The National Company law Tribunal Delhi bench of Shri Manni Sankariah Shanmuga Sundaram And Shri Atul Chaturvedi Dismissed a section 7 petition for initiation of Corporate Insolvency Resolution process, holding that communications from the directors of the Corporate Debtor cannot override the lack of substantive documentary proof such as audited financials, books of accounts, or banking records for establishment of loan. The Financial creditor, Altitude Finvest Limited filed an...
Corporate Debtor's Shareholdings Are An Integral Part Of Financial Assets, Can't Be Excluded From Valuation Report: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri Sunil Kumar Aggarwal (Judicial Member) and Shri Radhakrishna Sreepada (Technical Member) the has held that the shareholdings of the corporate debtor in its subsidiaries form an integral part of its financial assets therefore cannot be excluded from the valuation reports. Such exclusion of the financial assets compromise the fairness and integrity of the CIRP. The present applicant has been filed seeking fresh...
No Direction Pertaining To Fees & Expenses Of Resolution Professional Can Be Passed Prior To Adjudication Of S.99 Report: NCLT Delhi
The National Company Law Tribunal Delhi allowed applications filed by the Central Bank of India seeking replacement of Resolution Professional for failure of submission of report as per section 99 of the Insolvency & Bankruptcy Code, 2016 and demanding fees before adjudication of the report. The bench of Shri Manni Sankariah Shanmuga Sundaram and Shri Atul Chaturvedi held that “any directions pertaining to the fees and expenses of the resolution professional, prior to adjudication...
Sale Of Corporate Debtor's Assets Can't Be Allowed At Reserve Price Reduced Beyond 25% As It Violates Liquidation Regulations: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri. Sunil Kumar Aggarwal (Judicial Member) and Shri. Radhakrishna Sreepada (Technical Member) has held that the sale of the Corporate Debtor's assets cannot be allowed at a reserve price reduced beyond the 25% threshold, as it would violate Schedule I of the Liquidation Regulations. This cannot be done by the Adjudicating Authority even by exercising its powers under section 60(5) of the IBC as it would amount to creating a...
Changing Incorrect Date Of Default Is Permitted Before Final Adjudication If No New Cause Of Action Is Raised By Such Amendment: NCLT Amravati
The National Company Law Tribunal (NCLT), Amravati Bench of Shri Umesh Kumar Shukla (Technical Member) and Shri Kishore Vemulapalli (Judicial Member) held that a change in the incorrect date of default mentioned in the original petition can be allowed before final adjudication, provided it does not introduce a new cause of action and no prejudice is caused to the corporate debtor by such an amendment. The present application has been filed under section 60(5) of the Insolvency and...
After Initiation Of CIRP, There Can Be No Encumbrances On Corporate Debtor's Assets: NCLT Chennai
The National Company Law Tribunal (NCLT), Chennai Bench of Sanjiv Jain (Judicial Member) Shri. Ravichandran Ramasamy (Technical Member) has held that after the initiation of the Corporate Insolvency Resolution Process (CIRP), there can be no encumbrances on the assets of the corporate debtor, and all claims must be dealt with in accordance with Section 53 of the IBC. The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking ...
Sale Of Corporate Debtor's Property Can't Be Declared Fraudulent Merely On Claim Of Security Interest Without Supporting Evidence: NCLT Kochi
The National Company Law Tribunal (NCLT), Kochi Bench of Shri. Vinay Goel (Judicial Member) and Smt. Madhu Sinha (Technical Member) has held that when the property of the Corporate Debtor is purchased in good faith by a bona fide purchaser, the mere fact that the sale price was slightly lower than the actual price does not bring the transaction within the ambit of a fraudulent transaction, especially when the sale is sought to be reversed on the ground that the property was charged in...
In Absence Of Claims From Financial Or Operational Creditors, Liquidation Order Must Be Passed U/S 33 Of IBC: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri Sunil Kumar Aggarwal (Judicial Member) and Shri Radhakrishna Sreepada (Technical Member) has held that in the absence of any claims from either financial or operational creditors, due to lack of supporting documents to prove such claims and the inability to constitute the Committee of Creditors (CoC), liquidation of the corporate debtor can be ordered under Section 33 of the IBC. The present application has been filed ...
Claims Of Multiple Operational Creditors Arising From Different Work Orders Can't Be Clubbed Into Single Debt To Cross Threshold Limit: NCLT Chennai
The National Company Law Tribunal (NCLT) Chennai bench of Justice Sanjiv Jain (Judicial Member) and Venkataraman Subramaniam (Technical Member) has held that claims arising from different work orders cannot be clubbed to cross the threshold limit for filing an insolvency petition under section 9 of the IBC. Furthermore, claims of multiple Operational Creditors cannot be clubbed into a single debt for the purpose of a petition under section 9 of the IBC. The present petition has been...
No Bar On Compounding Offence U/S 441 Of Companies Act If Punishable With Fine Only: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench of Hon'ble Shri Ashish Kalia, (Judicial Member) and Hon'ble Shri Sanjiv Dutt (Technical Member) has held that since the punishment under Section 99 of the Companies Act, 2013 is only a fine, and as per Section 441 of the Act there is no bar on the Tribunal to compound an offence punishable only with a fine, the offence of not holding Annual General Meetings on time can be compounded. The present application has been filed seeking...
Financial Creditor Can File Plea U/S 7 Of IBC If Actionable Rights Under Guarantee Are Preserved In Approved Resolution Plan: NCLT New Delhi
The National Company Law Tribunal (NCLT), New Delhi Bench of Shri Manni Sankariah Shanmuga Sundaram (Hon'ble Member Judicial) and Shri Atul Chaturvedi (Hon'ble Member Technical) has held that Financial Creditors can proceed against Personal Guarantors even after the approval of the Resolution Plan, if actionable rights under the guarantee are preserved. The present petition has been filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of the...